As the most prolific homebuilder in the United States, D.R. Horton NYSE: DHI is battling a general market decline in new home sales and skittish buyers.
DHI Group is rated a buy, driven by its defensible MOAT in security-cleared tech talent and strong earnings growth. CJ, DHI's high-margin platform for cleared professionals, is becoming the primary earnings driver, offsetting Dice's cyclical weakness. Recent acquisition of PSG expands DHI into end-to-end staffing, enabling higher ARPU and diversified revenue streams.
I track a curated universe of 50 high-quality dividend growth stocks to identify attractive entry points based on valuation and forward return potential. Year-to-date, the universe lags SPY and SCHD, but select names like LRCX (+343%) and KLAC (+208%) have dramatically outperformed since inception. Currently, 40 stocks offer forward return estimates of at least 10%, with 24 appearing potentially undervalued by my free cash flow model.
Interest rates aren't likely to change anytime soon. But investors are already trying to get positioned for fall 2026—and as of this writing, betting on a rate cut is contrarian to say the least.